This is a collaborative post by Ellie Jo with tips to save money.
No matter what stage of life you’re in, it’s important that you discover the best ways to budget and manage your money. You don’t want to have to file for a consumer proposal or for bankruptcy because you didn’t have a hold on your finances. So it’s essential that you determine a technique that works for you, that stretches your money further.
But if you’re new to the budgeting game, you might not know where to start with this. So whether you’re wanting to save money for a vacation, for a particular item or simply for your future, you need to find the right guidance.
Budgeting Tips for Beginners
To help with this, here is a list of 7 top tips that you can use.
Look into your spending habits
One of the first things you should do when creating a budget is to look into your spending habits – either by checking your payment history digitally or obtaining a credit report.
By doing this, you can identify exactly what you’re spending each month and the areas that you need to work on. To maintain a healthy budget, you need to curb any overspending at the beginning.
For example, you might be spending more than you can realistically afford on subscription services or items that you don’t necessarily need. Although it might not seem favorable to cut these out, the difference it will make to your monthly bank balance will make it worth it in the long run.
Determine your financial goals
Another thing that you should prioritize is determining what your financial goals are. Do you want to own a house in 5 years time? Or perhaps you simply want enough money to live your ideal lifestyle. Whatever your financial goals, it’s a good idea to identify these when creating your budget.
These goals are very important as they give you something to work towards. As without them, you might be tempted to overspend. Each person’s financial goals are different, so you need to find one that works for you as soon as possible.
Discover Your Inflows And outflows
Alongside looking at your spending habits, you should also add up your monthly income and determine what your essential outflows are.
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By adding up your total income along with utility costs and other key living wages you’ll be able to create a budget not only for these but for other expenses.
Look at your calendar
To budget more effectively, it’s also worth looking at your calendar each month. This allows you to see any upcoming expenses and budget accordingly.
This could be anything from a birthday celebration to Christmas. One of the first steps you can take towards successfully managing your money, it’s a simple yet effective technique to use.
When setting your budgeting goals it’s vital that you’re realistic with them. There’s no point saying that you’ll be able to save all of your wages each month – that simply isn’t viable.
So instead focus on budgeting in a way that’s more attainable. You need to be able to walk the line between underspending but still not limiting yourself too much.
Use an App
If you want further guidance when it comes to budgeting, you could also use an app to help track your finances. Ideal for those who want to track their money digitally, it will lay out all of your income and guide you as to what you can spend.
You can then adjust your budget if needed, to either accommodate your growing income or if you want to limit your expenditure.
Stop relying on credit cards
If you really want to cut down and improve your budgeting, then another step you can take it to stop relying on credit cards so much. This isn’t to say that you should take out lots of cash to spend instead. But that you should keep an eye on what you withdraw and try to not rack up debt on your cards.
So, there you go! Those are 7 simple yet effective budgeting tips that are ideal for beginners or those who want to up their budgeting game. With budgeting, it’s all about finding a technique that works for your unique situation.
So you should never opt for a one size fits all solution – just because it claims to be effective. As long as you get hold of your finances and seek professional guidance, you should be on the path to financial success in no time at all.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.